Former U.S. President Donald Trump has warned that his administration could suspend imports of cooking oil from China, escalating tensions between the world’s two largest economies and reviving fears of a renewed trade war.
In a post on Truth Social on Tuesday, Trump accused Beijing of engaging in “an economically hostile act” by refusing to purchase U.S. soybeans — once a cornerstone of American agricultural exports to China. “We are considering terminating business with China having to do with cooking oil, and other elements of trade, as retribution,” Trump wrote. “We can easily produce cooking oil ourselves; we don’t need to purchase it from China.”
The warning follows China’s decision to halt imports of U.S. soybeans, which previously accounted for more than 40% of American soybean exports. Beijing has since turned to Argentina and Brazil for supplies, a move that has dealt a major blow to U.S. farmers.
Trump’s remarks come amid escalating tit-for-tat measures between Washington and Beijing. After China announced new global export controls on rare earth minerals — critical to high-tech and defense industries — Trump threatened to impose an additional 100% tariff on Chinese goods beginning November 1.
While Trump’s comments suggest cooking oil imports could become a new flashpoint, economists say the practical impact would likely be limited. The U.S. imports relatively little edible oil from China. Instead, most Chinese exports to the U.S. in this category are used cooking oil (UCO) — a byproduct repurposed for making sustainable aviation fuel, animal feed, and industrial lubricants.
Chinese exports of UCO surged in recent years after President Joe Biden’s administration introduced tax incentives for clean energy under the 2022 Inflation Reduction Act. China became the top supplier of UCO to the U.S. in 2023, exporting 1.27 million tons valued at around $1.2 billion. However, those exports have fallen sharply this year following new U.S. tax restrictions on foreign-sourced biofuels and higher tariffs on Chinese imports.
Beijing has also terminated export tax rebates for UCO, further reducing shipments. According to the U.S. Department of Agriculture, Chinese exports of UCO dropped 60% in December 2024, while U.S. imports in the first half of this year fell 43% from a year earlier.
Trump’s latest comments add to a growing series of retaliatory moves on both sides. U.S. Trade Representative Jamieson Greer blamed Beijing’s rare earth export controls for reigniting trade tensions, while China’s Commerce Ministry accused Washington of “overstretching the concept of national security” and applying “discriminatory actions” against Chinese industries.
Despite the rising tensions, Trump sought to reassure markets on Tuesday, saying the relationship with Beijing remained manageable. “We have a fair relationship with China, and I think it’ll be fine. And if it’s not, that’s OK too,” he said.
Analysts say both nations appear to be hardening their stances ahead of a November 10 deadline for trade talks, raising the prospect of renewed economic confrontation between Washington and Beijing.
